Investors fearful of artificial intelligence bubble stock would have missed Celestica (CLS). The company reported strong third-quarter results and raised its Q4 outlook. CLS stock jumped by 10% in after-hours trading.
Celestica earned $1.58 a share (non-GAAP). Revenue increased by 27.6% Y/Y to $3.19 billion. In Q4, it is forecasting a $1.52 EPS and revenue of $3.10 billion.
In the beverage sector, Keurig Dr Pepper (KDP) might follow through with Monday’s rally. KDP stock increased by 7.62% after posting third-quarter results. Confidence increased after the firm revealed two strategic investments. Apollo Global (APO) and KKR (KKR) will invest $4 billion in their pod manufacturing joint venture. In addition, the firm gets $3 billion through a convertible preferred stock investment.
The investment might not benefit shareholders. Bankers might squeeze profits from the funding, but challenges loom. Investors should consider stronger, better-run companies like Coca-Cola (KO) and Pepsi (PEP).
A leaked memo indicated that Amazon (AMZN) would lay off up to 10% of its staff. The 30,000 corporate job cuts are unfortunate. It suggests that the company’s e-commerce division is underperforming, AWS margins are under pressure, and costs are too high. The cuts are expected, since Amazon is a leader in robotics and AI solutions.
Amazon has troubling competition ahead in AI. Executives cut staff in the Alexa division shortly after OpenAI released ChatGPT. AWS also appears to be losing ground to Microsoft’s (MSFT) Azure and Google’s (GOOG) GCP.
